Sheela Pattikonda Vishnukumar , Bellari V. The Income Tax Officer Ward-2 , Bellari

ITA 2441/BANG/2018

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 9274 (ITAT-BANGALORE)
• Duration Of Justice: 1 year(s) 11 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-08-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 30-07-2020
• Assessment Year: 2013-2014
• Appeal Filed On: 27-08-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: MALLHA RAO
• Keywords: Unexplained investment; Additional evidence
• Section: 13; 69

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : BANGALORE BEFORE SHRI. A.K GARODIA, ACCOUNTANT MEMBER AND SMT. BEENA PILLAI, JUDICIAL MEMBER ITA NO.2441/BANG/2018 ASSESSMENT YEAR : 2013-14 SHEELA PATTIKONDA VISHNUKUMAR, C/O LAKSHMI PICTURE PALACE, HAMPI ROAD, HOSPETE, BELLARY DISTRICT-583 201. PAN : ACOPV 3103 B VS. THE INCOME TAX OFFICER, WARD-2, BELLARY DISTRICT. APPELLANT RESPONDENT APPELLANT BY : SHRI MALLHA RAO, ADVOCATE RESPONDENT BY : MS. NEERA MALHOTRA, CIT (DR) DATE OF HEARING : 30-07-2020 DATE OF PRONOUNCEMENT : 14-08-2020 ORDER PER BEENA PILLAI, JUDICIAL MEMBER PRESENT APPEAL HAS BEEN FILED BY ASSESSEE AGAINST O RDER DATED 29.06.2018, PASSED BY LD.CIT(A), GULBARGA, FO R ASSESSMENT YEAR 2013-14, ON FOLLOWING GROUNDS OF APPEAL, ON FO LLOWING GROUNDS OF APPEAL: 1. THE ORDER OF THE LEARNED APPELLATE AUTHORITY IS OPPOSED TO LAW, EQUITY, FACTS, AND CIRCUMSTANCES OF THE CASE. 2. THE LEARNED APPELLATE AUTHORITY HAS ERRED BY MAK ING ADDITION OF RS 3,42,36,271/- UNDER SECTION 69 OF THE INCOME TAX AC T, 1961 AS UNEXPLAINED INVESTMENT. THE APPELLANT HAS RECEIVED CONFIRMATION FROM THE CONCERNED PARTIES AND MOST OF THE TRANSACTIONS TAKE N PLACE THROUGH BANK. PAGE 2 OF 7 ITA NO.2441/BANG/2018 THE LD. APPELLATE AUTHORITY FAILS TO CONSIDER SUCH EXPLANATIONS, WHICH IS ACCOMPANIED BY THE BANK STATEMENT. 3. THE LEARNED APPELLATE AUTHORITY HAS FAILED TO CO NSIDER THE CONFIRMATION LETTERS FINANCIAL STATEMENT AND TO SUBSTANTIATE HER CLAIM AND SAME HAS BEEN SUBMITTED AS ADDITIONAL EVIDENCE. 4. FOR THE ABOVE AND SUCH OTHER GROUNDS AS MAY BE U RGED AT THE TIME OF HEARING, YOUR APPELLANT PRAYS YOUR HONOUR TO CONSID ER THE FACTS AND CIRCUMSTANCES OF THE CASE AND RENDER JUSTICE. BRIEF FACTS OF THE CASE ARE AS UNDER: 3. ASSESSEE IS AN INDIVIDUAL AND DERIVES HER INCOME AS A PARTNER IN SH.LAXMI PICTURE PALACE HOSAPETE, SALARY FROM FASHION FORUM INDIA PVT. LTD., CHANNAPATNA DURING THE YEAR. IT IS RECORDED BY LD.AO THAT, ASSESSEE DID NOT FILED HER RETURN OF INCOME FOR YEAR UNDER CONSIDERATION AND THAT, THERE WAS AN INFORMATION THAT ASSESSEE MADE INVESTMENT BY WAY O F PAYMENT OF ADVANCE OF RS.2,11,36,746/- TO FASHION FORUM IND IA PVT.LTD., AND PURCHASED A RESIDENTIAL PROPERTY AT BOMMANAHALL I, HOSUR. 4. LD.AO, ACCORDINGLY, ISSUED NOTICE UNDER SECTION 148. ASSESSEE VIDE LETTER DATED 24/03/2070 FILED RETURN OF INCOME DECLARING TOTAL INCOME OF RS.11,91,800/- IN RESPONS E TO NOTICE UNDER SECTION 148. THE SAME WAS INTIMATED TO LD.AO VIDE LETTER DATED 10/04/2017. SUBSEQUENTLY, THIS RETURN WAS SEL ECTED FOR SCRUTINY AND NOTICES UNDER SECTION 142 (1) AND 143 (2) WERE ISSUED TO ASSESSEE. ASSESSEE WAS CALLED UPON, VIDE VARIOUS NOTICES DATED 19/06/2017, 06/07/2017, 31/08/2017, 20/09/2017, 09/10/2017, 9/11/2017 AND 13/12/2017 TO FURNISH BANK STATEMENTS, STATEMENT OF AFFAIRS, DETA ILS OF MOVABLE AND IMMOVABLE PROPERTIES PURCHASED AND SOLD DURING THE YEAR, WITH DOCUMENTARY EVIDENCE, ALONG WITH DETAILS OF SO URCE FOR SAID INVESTMENT. PAGE 3 OF 7 ITA NO.2441/BANG/2018 5. ON FURNISHING OF DETAILS, LETTER UNDER SECTION 1 33 (6) WAS ISSUED TO ING VYSYS BANK, LAXMI VILAS BANK, AND THE SUB REGISTRAR BOMMANHALLI, FOR COLLECTING INFORMATION. 6. LD.AO OBSERVED THAT ASSESSEE HAD RECEIVED SALARY FROM PARTNERSHIP FIRM OF RS.1,164/- AND INTEREST FROM FI RM AT RS.33,765/-. ASSESSEE ALSO HAD A CAPITAL BALANCE OF RS.3,23,146/- AS ON 31/03/2013. IT WAS ALSO NOTED B Y LD.AO THAT ASSESSEE EARNED SALARY OF 12,00,000/- FROM FAS HION FORUM INDIA PVT LTD. THE LD.AO NOTED THAT, DURING THE YEA R ASSESSEE ADVANCED A SUM OF RS.2,11,36,746/- TO FASHION FORUM INDIA PVT LTD., AND ASSESSEE PURCHASED RESIDENTIAL PROPERTY ON 03/10/2012 FOR RS.1,27,96,525/- AND MADE CASH DEPOS ITS OF RS.3,03,000/- IN ING VYSYA BANK. 7. ASSESSEE WAS CALLED UPON TO FILE CASH FLOW STATE MENTS, STATEMENT OF AFFAIRS ALONG WITH SOURCES FOR SAID I NVESTMENT VIDE NOTICES ISSUED UNDER SECTION 142 (1) OF THE ACT. 8. IN RESPONSE TO THE NOTICES, REPRESENTATIVE OF AS SESSEE APPEARED AND SUBMITTED THAT RS.10 LACS EACH WAS REC EIVED ON 16/08/2012 AND 03/10/2012 BY WAY OF DD AND CASH RESPECTIVELY PAID DIRECTLY TO SELLER ON BEHALF OF A SSESSEE BY MEGA CITY DEVELOPERS LTD., TOWARDS PURCHASE OF LAND. IT WAS SUBMITTED THAT SUM OF RS.1,08,07,109/- WAS RECEIVED ON 01/10/ 2012 DIRECTLY BY SELLER ON BEHALF OF ASSESSEE FROM SHRI C.P.YOGESHWARA, TOWARDS PURCHASE OF LAND AND A SUM OF RS.2CRORES RE CEIVED ON 07/02/2013 FROM VKL RESORTS INDIA PVT.LTD TOWARDS A DVANCED TO FASHION FORUM INDIA PVT LTD. PAGE 4 OF 7 ITA NO.2441/BANG/2018 9. LD.AO ACCORDINGLY ISSUED NOTICE UNDER SECTION 13 3 (6) CALLING FOR THE DETAILS OF LEDGER ACCOUNTS ALONG WI TH REASONS FOR ISSUE OF AMOUNT AND MODE OF PAYMENT MADE TO ASSESSE E. FROM ANNUAL ACCOUNT OF VKL RESORT INDIA PVT LTD IT WAS O BSERVED FROM MINISTRY OF CORPORATE AFFAIRS BY LD.AO THAT NO ADVA NCES WAS PAID BY THEM TO ASSESSEE. THE SAME WAS INTIMATED TO ASSE SSEE BY LD.AO. 10. REPRESENTATIVE OF ASSESSEE APPEARED BEFORE LD.A O AND SUBMITTED THAT, SINCE ASSESSEE IS NOT RELATED PARTY TO BE VKL RESORTS INDIA PVT LTD., THE AMOUNT IS NOT APPEARING IN BALANCE SHEET. FURTHER, IT WAS ALSO SUBMITTED THAT, SOURCE OF PURCHASE OF LAND IS FROM MEGACITY DEVELOPERS PVT.LTD., AND HER SPOUSE, HOWEVER NO DETAILS WERE FURNISHED BY ASSESSEE IN RE GARDS TO THE SAME. 11. DUE TO NON-FURNISHING OF RELEVANT DETAILS, AND NON- FURNISHING OF EXPLANATION REGARDING SOURCES OF INVE STMENT AMOUNTING TO RS.2,11,36,746/-IN FASHION FORUM INDIA PVT. LTD., LD.AO MADE ADDITION UNDER SECTION 69 OF THE ACT, TO THE EXTENT OF RS.3,42,36,271/-. 12. BEFORE LD.CIT (A), ASSESSEE MADE IDENTICAL SUBM ISSIONS FOR WHICH AGAIN NO DOCUMENTARY EVIDENCES WERE FURNISHED IN SUPPORT. LD.CIT (A) ACCORDINGLY DISMISSED THE APPEA L OF ASSESSEE BY OBSERVING AS UNDER: 5. I HAVE CAREFULLY GONE THROUGH THE ASSESSMENT OR DER AND SUBMISSIONS MADE BY THE APPELLANT DURING APPELLATE PROCEEDINGS. THE APPELLANT STATED THAT THE INVESTMENT IN RESIDENTIAL PROPERTY WAS MAD E THROUGH DD WHICH VA RECEIVED FROM MEGACITY AND FROM HER SPOUSE. THE APP ELLANT HAD NOT SUBMITTED ANY OTHER DETAILS SUCH AS THE PROOF THAT THE AMOUNT FOR DRAWING THE DEMAND DRAFT WAS RECEIVE1 FROM THE MEGACITY AND FROM HER SPOUSE. FURTHER WHY SUCH AMOUNT WAS RECEIVED FROM BOTH THE PERSONS WAS NOT SUBMITTED BY THE APPELLANT. FURTHER, NO CONCRETE DO CUMENTARY EVIDENCE IN- PAGE 5 OF 7 ITA NO.2441/BANG/2018 RESPECT OF FUNDS RECEIVED FROM THE SAID PERSONS WAS PRODUCED. WITH REGARD TO THE INVESTMENT FASHION FORUM (I)(P) LTD., AS PER THE ASSESSMENT ORDER THE INVESTMENT WAS MADE FROM THE FUNDS RECEIV ED FROM VKL RESORTS (I) PVT LTD, BUT THE APPELLANT SUBMITTED THAT THE F UNDS WERE RECEIVED FROM KAYALTHEERAMN BUILDERS AND RESORTS INDIA PVT LTD WH ICH IS A SISTER CONCERN OF VKL RESORTS (I) PVT. LTD. FURTHER NO OTH ER DETAILS WERE SUBMITTED BY THE APPELLANT SUCH AS MODE OF PAYMENT/RECEIPT OF SUCH AMOUNT AND UOSC OF RECEIVING SUCH HUGE AMOUNT FROM SAID COMPAN Y. FURTHER THE APPELLANT HAD NOT SUBMITTED CONSIDERABLE EXPLANATIO N IN RESPECT OF CASH DEPOSITS IN ING VYSVA BANK. IN VIEW OF THE ABOVE AN D CONSIDERING THE NON- SUBMISSION OF RELIABLE DOCUMENTARY EVIDENCE THAT CA N BE CONSIDERED, THE APPEAL OF THE ASSESSEE CANNOT BE ALLOWED. HENCE THE APPEAL OF THE ASSESSEE IS DISMISSED. THE GROUND NOS. 1, 2 & 3 ARE DISMISSED. THE GROUND NO. 4 IS IN GENERAL, NO ADJUDICATION REQUIRE D. 13. AGGRIEVED BY ORDER OF LD. CIT (A) ASSESSEE IS B EFORE US NOW. ADMITTEDLY, ASSESSEE HAS NOT FURNISHED ANY DETAILS IN RESPECT OF THE INVESTMENTS MADE IN LAND AS WELL AS DEPOSITS LY ING IN BANK ACCOUNT. UNDER THESE CIRCUMSTANCES WE ARE UNABLE TO DO JUSTICE TO THE ISSUES UNDER CONSIDERATION. 14. IN THE INTEREST OF JUSTICE, WE FIND IT APPROPRI ATE, TO SEND THIS ISSUE BACK TO LD.AO. ASSESSEE IS DIRECTED TO F ILE ALL RELEVANT DETAILS IN RESPECT OF SOURCE OF INVESTMENTS MADE IN LAND AS WELL AS AMOUNT INVESTED IN FASHION FORUM PVT.LTD., AND TO SUBSTANTIATE THESE INVESTMENTS BY WAY OF PROPER DOC UMENTARY EVIDENCES. LD. AO SHALL THEN VERIFY ALL THESE DETAI LS AND CONSIDER CLAIM OF ASSESSEE IN ACCORDANCE WITH LAW. ----SPACE LEFT INTENTIONALLY----- PAGE 6 OF 7 ITA NO.2441/BANG/2018 ACCORDINGLY, GROUNDS RAISED BY ASSESSEE STANDS ALLO WED FOR STATISTICAL PURPOSES. IN THE RESULT, APPEAL FILED BY ASSESSEE STANDS ALLO WED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 14 TH AUGUST, 2020. SD/- SD/- (A.K GARODIA) (BEENA PILLAI) ACCOUNTANT MEMBER JUDICIAL ME MBER BANGALORE, DATED, THE 14 TH AUGUST, 2020. /VMS/ COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME-TAX APPELLATE TRIBUNAL. BANGALORE. PAGE 7 OF 7 ITA NO.2441/BANG/2018 DATE INITIAL 1. DRAFT DICTATED ON ON DRAGON SR.PS 2. DRAFT PLACED BEFORE AUTHOR -08-2020 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER -08-2020 JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. -08-2020 JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS -08-2020 SR.PS/PS 6. KEPT FOR PRONOUNCEMENT ON -08-2020 SR.PS 7. DATE OF UPLOADING THE ORDER ON WEBSITE -08-2020 SR.PS 8. IF NOT UPLOADED, FURNISH THE REASON -- SR.PS 9. FILE SENT TO THE BENCH CLERK -08-2020 SR.PS 10. DATE ON WHICH FILE GOES TO THE AR 11. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 12. DATE OF DISPATCH OF ORDER. 13. DRAFT DICTATION SHEETS ARE ATTACHED NO SR.PS